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Using a Graph of Offer Curves,for Each of the Following,identify

Question 26

Essay

Using a graph of offer curves,for each of the following,identify the effect of the change listed on the relative price of good X and on exports of good X by Nation 1.
a. The supply of Y increases in Nation 2.
b. The demand for X decreases in Nation 1.

Correct Answer:

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a.Nation 2's offer curve shifts towards ...

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